Jan 13

Realm Energy Powers Ahead in Poland

By Curve Realm, Realm Energy No Comments »

Midas subscribers who bought Realm Energy (TSX.V:RLM) on the advice of our September newsletter have been celebrating lately, as the junior stock they bought at $0.30 powered through $1.50 Thursday for a %400 win.

Realm Energy’s great ambition is to become a shale gas mega play in Eastern Europe – specifically, Poland.

On June 14, 2010, the company was awarded concessions in Poland which cover a gross area of 635,541 acres (2,572 square kilometres) and net 464,918 acres (1,881 square kilometres). One concession, Gniew, is held 100 per cent by the company (294,296 acres or 1,191 square kilometres), and the other two concessions, Llawa and Wegrow, are held 50 per cent by the company and 50 per cent by Source Energy Partners, a Denver-based private shale company.

All of the concessions in Poland target natural gas in Silurian, Ordovician and Cambrian shales. The Silurian shales across the license areas are potentially hundreds of metres thick and range in drilling depth from 2,000 to 3,500 meters. The total organic carbon, measured by the Polish Geological Institute, ranges from 1 per cent to 17 per cent, with thermal maturities ranging from 430 to 458 C. The Silurian shales may lie at optimal depths for maturity and natural gas recovery.

Poland has currently seen the most activity of foreign companies with ConocoPhillips, ExxonMobil, Marathon, Chevron, Talisman, Lane Energy, BNK Petroleum, Emfesz, EurEnergy Resources, RAG, San Leon Energy and Sorgenia E&P all involved at some level in exploratory work. Quotes on potential Polish reserves range from 1.5 to 5 trillion cubic meters, indicating that it is still unclear what the numbers really are.

These are some big names is the business, and for a little junior to have such a big position is impressive. Not that they will be able to develop the asset on their own. But if drilling by majors in relatively close proximity to Realm’s land meets success, Realm will become a belle of the ball as the majors will move quickly to gain control of the resource.

So with big reserve potential, and cheap land costs – under $1 per acre sometimes vs. $5000 per acre in North America – for both oil and gas – and gas prices are at least 50% higher in Europe than North America and the economics for a big discovery could be very compelling.

Great indicators of a project’s likelihood of success can often be discerned by the talent the company attracts. Realm announced on the 7th of June this year that Mike Mullen joined the company as chief operating officer. Mr. Mullen brings nearly 30 years of experience and expertise in unconventional reservoir characterization to the company. His experience as a shale stimulation petrophysicist has included work on tight gas formations, coalbed methane, shale oil and shale gas. Most recently, he led a multidisciplinary group of engineers specializing in the integration of petrophysics, reservoir simulation and economic stimulation design with Halliburton’s technical team in Denver, Colo. He has led the successful design and execution of hundreds of successful stimulations across a wide range of North America’s major shale plays including the Barnett, Fayetteville, Woodford, Marcellus, Haynesville, Mancos and Bakken shales.

This is the first of 2 vertical wells that Lane Energy (3Legs sub) and ConocoPhillips plan to drill this year with a horozontal well planned for next year. Lane is currently the operator but Conoco has the ability to earn-in up to 70% by funding the exploration work.

Poland’s state-owned oil and gas company PGNiG is completing the drilling. They drilled the first well to a depth of 3,000 meters earlier this year and encountered gas so Lane Energy is expecting the current vertical well to be successful. Drilling is currently taking place on concession block #28. Lane’s second vertical well that should begin in the next several weeks on block #70 is where Realm also has 100% owned ground. Rig time has already been booked for this.

PGNiG has more than a dozen concessions and is also currently drilling on Block #296 which is South of the Lane’s ground and not far from Realm’s Wegrow concession.

What Exactly Are ‘Oil Shales’?
According the International Oil Shale Journal, oil shale is an organic-rich fine-grained sedimentary rock that contains significant amounts of kerogen (a solid mixture of organic chemical compounds) from which liquid hydrocarbons can be extracted. Kerogen requires more processing to use than crude oil, which increases its cost as a crude-oil substitute both financially and in terms of its environmental impact. Deposits of oil shale occur around the world, including major deposits in the United States of America. Estimates of global deposits range from 2.8 trillion to 3.3 trillion barrels of recoverable oil.

The chemical process of pyrolysis can convert the kerogen in oil shale into synthetic crude oil. Heating oil shale to a sufficiently high temperature will drive off a vapor which processing can distill (retort) to yield a petroleum-like shale oil—a form of unconventional oil—and combustible oil-shale gas (the term shale gas can also refer to gas occurring naturally in shales). Industry can also burn oil shale directly as a low-grade fuel for power generation and heating purposes and can use it as a raw material in chemical and construction-materials processing.

Oil shale has gained attention as an energy resource as the price of conventional sources
of petroleum has risen and as a way for some areas to secure independence from external suppliers of energy. At the same time, oil-shale mining and processing raise a number of environmental concerns, such as land use, waste disposal, water use, waste-water management, greenhouse-gas emissions and air pollution. Estonia and China have well-established oil shale industries, and Brazil, Germany, Israel and Russia also utilize oil shale.

There’s difference between producing gas from oil shales, (Questerre has a very informative video on the process here), and extracting oil from shales.

Gas can generally be extracted using multi-stage hydraulic fracing which has become a very economic production technique – especially for near surface deposits. In fact, as evidence by the slide at right, Encana, Canada’s largest natural gas company, predicts that the market share of shale gas will grow from its current levels of 16% to over 50% of all gas sold by 2020. This is because these shale gas ‘mega plays’ (like the one Questerre is developing) produce gas very cheaply compared to conventional production sources. So even with gas prices stuck in a low rut, it makes sense to invest in the companies who will be able to deliver gas profitably to a market whose appetite is still increasing. Shale gas plays will displace conventional gas plays from the market over time simply because they are so cheap in the long run.

Source: Midas Letter

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Oct 29

Realm Energy Announces Private Placement

By Curve BMO Nesbitt Burns, Peninsula Merchant Syndications Corp., Private placement, Quantum Partners LP, Realm, Realm Energy, Soros Fund Management LLC, TSX Venture Exchange No Comments »

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

FOR IMMEDIATE RELEASE – OCTOBER 28, 2010

Realm Energy Announces Private Placement

Canada, October 28, 2010 – Realm Energy International Corporation (“Realm Energy” or the “Company”) (TSX-V:RLM) (www.realmenergy.ca) pleased to announce a non-brokered private placement of up to 10,000,000 units at a price of $0.60 per unit for cash proceeds of up to $6,000,000 to Quantum Partners LP (“Quantum”), a private investment fund managed by Soros Fund Management LLC (the “Private Placement”).

Each unit comprises one common share and one half of a common share purchase warrant.  Each whole common share purchase warrant will entitle the holder to acquire one additional common share of the Company at a price of $0.95 for a period of two years.  The Company may pay fiscal advisory fees on all or a portion of the Private Placement to Peninsula Merchant Syndications Corp., a private merchant bank controlled by Sam Magid, and BMO Nesbitt Burns.  Subject to the acceptance of the TSX Venture Exchange, such fiscal advisory fees may be paid in securities in lieu of cash.

Upon the closing of the Private Placement, it is expected that Quantum, upon conversion of the warrants expected to be held by Quantum, would hold approximately 19.5% of the Company’s issued and outstanding shares.

The net proceeds of the Private Placement will be used to continue the technical evaluation and acquisition of shale gas and shale oil plays throughout continental Europe and for general working capital purposes.

The most recent closing price of the Company’s common shares on the TSX Venture Exchange was $0.72. The private placement is subject to applicable regulatory approval requirements, including the acceptance by the TSX Venture Exchange, and the common shares issued will be restricted from trading for a period of four months from the date of issuance in compliance with TSX Venture Exchange policies and securities legislation.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” within the meaning of applicable Canadian provincial securities legislation. Forward-looking statements include, but are not limited to statements with respect to the proposed use of the net proceeds of the Private Placement (as defined above). Forward-looking statements are necessarily based upon estimates and assumptions that, while considered by the Company’s management to be reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; or delay or failure to receive regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law or the policies of the TSX Venture Exchange.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

THE SECURITIES TO BE ISSUED UNDER THE PRIVATE PLACEMENT HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 (AS AMENDED) OR ANY STATE SECURITIES LAWS, AND UNLESS SO REGISTERED MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE UNITED STATES SECURITIES ACT OF 1933 AND APPLICABLE STATE SECURITIES LAWS. THIS PRESS RELEASE IS ISSUED PURSUANT TO RULE 135(C) OF THE UNITED STATES SECURITIES ACT OF 1933 (AS AMENDED), AND DOES NOT CONSTITUTE AN OFFER TO SELL, OR THE SOLICITATION OF AN OFFER TO BUY, NOR SHALL THERE BE ANY SALE OF SECURITIES OF THE COMPANY IN ANY

JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL RIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION.

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Feb 26

“North American players looking at shale gas opportunities in Europe”: The Canadian Press

By Trevor J. Murphy shale gas in Europe No Comments »

The same technology that unleashed a natural gas bonanza in North America over the past decade has the potential to transform the European energy industry.

“A year or two from now, the activity over in Europe is going to be absolutely frenetic, and so you’ve got to get in there early,” said Craig Steinke, executive chairman of junior explorer Realm Energy International (TSXV:RLM).

Realm, which has offices in Vancouver and London, is involved in eight different shale basins in seven European countries, though it doesn’t disclose specifics for competitive reasons.

The likes of ExxonMobil Corp. (NYSE:XOM), Royal Dutch Shell PLC (NYSE:RDS), ConocoPhillips (NYSE:COP) and Chevron Corp. (NYSE:CVN) have begun to grab stakes in shale formations in Poland, Germany, Hungary, Ukraine and other European countries.

Some may wonder why North American companies would look for shale opportunities across the Atlantic when there are plenty of promising plays in their own backyard.

“In North America as a whole, the lands have been bid up to significantly high prices,” said Steinke.

“If you don’t have the land, you’re on the outside looking in.”

In Europe, energy companies can negotiate directly with government authorities to acquire large, contiguous tracts of land – though it may not be that way for long if activity picks up, said Steinke.

“Realm’s goal is to be an early mover on acquiring the lands. It’s going to put the company in a very advantageous position as the momentum builds,” he said.

“The opportunity won’t be there forever, that’s for certain.”

Shale is a ubiquitous type of sedimentary rock that is as tough as concrete. Freeing natural gas molecules from within the rock is no easy feat as it requires enormous amounts of water, chemicals, sand and, above all, technical know-how.

North America’s shale gas industry has its roots in the Barnett formation in north-central Texas, where energy companies began honing their techniques about 10 years ago.

Since then, horizontal drilling and multi-stage fracturing have spread to the Marcellus play in New York and Pennsylvania, the Haynesville play in Texas and Louisiana and the Horn River and Montney plays in northeastern British Columbia.

Realm collaborates with U.S. energy services giant Halliburton Co. (NYSE:HAL), which has been active in virtually all of North America’s shale gas plays.

Halliburton has been helping Realm parlay expertise it garnered from North American shale gas plays into European ones, which share many of the same characteristics.

European shale gas is also on the radar of Talisman Energy Inc. (TSX:TLM), already a big landholder in the Marcellus and Montney formations.

“We haven’t done any deals yet, but we are looking hard and depending on how things go, we could see an entry into an international opportunity,” Richard Herbert, Talisman’s executive vice-president of exploration, said on a conference call with analysts and reporters earlier this month.

Another reason European shale gas could be attractive is pricing. North America is currently dealing with a glut situation, in which supply is outpacing demand.

European countries are also eager to stop relying on natural gas imports from Russia, which has had a history of suddenly shutting off supplies amid disputes with its neighbours.

It’s going to take several years of work before European shale gas is commercially viable, said Michael Dawson, president of the Canadian Society for Unconventional Natural Gas.

Energy companies already know all the ins-and-outs of North America’s geology because so much conventional oil and gas drilling has taken place there. That’s not the case in Europe, he said.

There also isn’t much there in the way of specialized equipment needed to drill the high-tech wells. So all of that has to be built or transported from elsewhere.

“I think there has to be a realization that while everybody seems to be getting on the bandwagon with shale gas right now, it just doesn’t happen overnight,” said Dawson.

“It’s not a slam dunk that the shale gas potential in Europe is going to be successful.”

- By Lauren Krugel for The Canadian Press

SOURCE:
MSN.ca: “North American players looking at shale gas opportunities in Europe”

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Jan 28

Exploring France’s Shale Potential

By Trevor J. Murphy shale gas in Europe No Comments »

Though French energy giant Total recently announced a $2.25 billion joint venture with Oklahoma-based Chesapeake Energy Corp., the venture isn’t saying much about the potential for shale gas in France.

This particular deal will see Total invest billions of dollars to acquire 25 per cent of Chesapeake’s Barnett Shale assets – a natural gas field in Texas – rather than staying close to home and exploring the rich resources the European country has to offer.

“There is much shale gas in France,” said Francois Laurant, the man in charge of shale gas at Institut Francais du Petrole. “It has been seeping for centuries around the town of Grenoble in midsoutheastern France. But the disputed areas hold black shale in shallower ground than elsewhere in France like the Paris basin.”

Since late 2008, several companies have been seeking permits to explore shale gas prospects in the southern regions of the country. In August 2009, Toreador was granted a contract for the exploitation of the Paris Basin Oil Shale earning the right to develop 649,000 acres (with an additional 153,000 acres pending approval) where an estimated 65 billion barrels of oil are believed to remain in shale plays.

France’s potential – and, undoubtedly Europe’s potential – was further highlighted when oil giants BP, Shell and Statoil began talks of buying Toreador earlier this month (read: Oil giants BP, Shell and Statoil in talks to buy US-based Toreador Resources) in the interest of acquiring its French shale opportunities.

Shale gas is experiencing an unprecedented boom in the United States, but its popularity is pushing companies and entrepreneurs to look beyond US borders for prime investment opportunities. Recently, Vancouver-based Realm Energy publicly threw its hat into the ring for European exploration, concentrating on eight discrete sedimentary basins in seven European countries and submitted applications for oil and gas rights that collectively extend over 1.5 million acres of land.

SOURCE:
Oil & Gas Journal: “Shale Gas Acreage, European Database Draw Interest”
Rigzone: “Toreador Zeroes is on Paris Basin Oil Shale for Future Developments”
Toreador: “Global Activity – France”
Realm: “Realm Energy Makes Aggressive Play for European Shale Gas Deposits”

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Jan 20

IEA: “Unconventional gas is unquestionably a game-changer”

By Trevor J. Murphy shale gas in Europe 1 Comment »

The recent capitalization on the exploration of shale gas in North America has transformed the global gas-market outlook, says the International Energy Agency.

The rapid development and extraction of the unconventional gas in places like Haynesville and Marcellus in the Unites States have kick-started the ambition by some companies to look to Europe for vast, unexplored shale plays.

“Unconventional gas is unquestionably a game-changer in North America with potentially significant implications for the rest of the world,” said Nobuo Tanaka, Executive Director of the International Energy Agency in a November press release.

The International Energy Agency estimates that unconventional gas resources in Europe, including coal-bed methane, could amount to 35 trillion cubic meters, six times higher than the continent’s conventional gas resources.

Some oil companies have already begun capitalizing on Europe’s un-tapped shale plays. Royal Dutch Shell PLC, for example, is expected to finish drilling its first three wells by the end of March hoping to extract what one spokesman called “enough gas to cover Sweden’s gas needs for at least 10 years.”

Other companies, such as Vancouver-based Realm Energy International, have also announced the will aggressively continue the evaluation and the acquisition of high potential shale deposits throughout Europe (read: Realm Energy, Halliburton Driving Shale Play Development Outside North America).

The Oil & Gas Journal reports that countries currently being evaluated by international oil and gas companies include France, Germany, Austria, Poland, Hungary and the UK.

SOURCES:
International Energy Agency: Press Releases
Oil and Gas India: “Shell begins drilling for shale gas in Sweden”
Oil & Gas Journal

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Jan 06

Realm Energy, Halliburton Driving Shale Play Development Outside North America

By Trevor J. Murphy shale gas in Europe 1 Comment »

From: New Technology Magazine, December 21 2009

In an effort to accelerate shale gas development, Realm Energy International Corporation and Halliburton have announced they will aggressively continue the evaluation of high potential shale deposits throughout Europe and select emerging countries.

In early 2009, Realm Energy began collaborating with Halliburton Consulting on a global evaluation of shale plays with potential for natural gas and oil production. Shale deposits are a proven and significant resource in North America and an emerging unconventional resource in other areas of the world.

With an initial focus on Europe, Realm Energy and Halliburton successfully selected eight discrete sedimentary basins in seven European countries, identified key prospect trends and targeted a substantial amount of petroleum and natural gas leases for acquisition.

“Following our evaluation, Realm Energy is pleased to inform its shareholders that the company is in the process of acquiring large contiguous tracts of land over significant shale formations,” said Realm Energy chairman Craig Steinke.

“As we enter the exploration and development phase of our strategy, we can rapidly transfer Halliburton’s extensive shale knowledge and modify best practices from all North American shale plays to continental Europe and beyond.”

Going forward, Realm Energy will access Halliburton’s global infrastructure and partnerships, leading edge solutions and customized strategies for optimizing value from each specific shale formation, with the highest environmental standards.

Halliburton is one of the world’s largest providers of products and services to the energy industry. The company serves the upstream oil and gas industry throughout the life cycle of the reservoir-from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field.

Realm Energy International Corporation is a Canadian domiciled global energy company focused on driving the exploration and development of major shale plays throughout Europe and emerging countries. The company is in the process of acquiring petroleum and natural gas rights in large contiguous tracts which it has identified as high potential, and is committed to leveraging the most advanced shale technology to bring these resources into production.

SOURCE
New Technology Magazine: “Realm Energy, Halliburton Driving Shale Play Development Outside North America”

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Dec 18

REALM ENERGY, HALLIBURTON DRIVING SHALE PLAY DEVELOPMENT OUTSIDE NORTH AMERICA

By ckeddy natural gas in the USA No Comments »

Vancouver, BC and Houston, TX – December 18, 2009 In an effort to accelerate shale gas development, Realm Energy International Corporation (“Realm Energy” or “the Company”) (TSX.V: RLM) and Halliburton (NYSE: HAL) are pleased to announce they will aggressively continue the evaluation of high potential shale deposits throughout Europe and select emerging countries.

In early 2009, Realm Energy began collaborating with Halliburton Consulting on a global evaluation of shale plays with potential for natural gas and oil production.  Shale deposits are a proven and significant resource in North America and an emerging unconventional resource in other areas of the world.  With an initial focus on Europe, Realm Energy and Halliburton successfully selected eight discrete sedimentary basins in seven European countries, identified key prospect trends and targeted a substantial amount of petroleum and natural gas leases for acquisition.

“Following our evaluation, Realm Energy is pleased to inform its shareholders that the Company is in the process of acquiring large contiguous tracts of land over significant shale formations,” said Realm Energy Chairman Craig Steinke.  “As we enter the exploration and development phase of our strategy, we can rapidly transfer Halliburton’s extensive shale knowledge and modify best practices from all North American shale plays to continental Europe and beyond.”

Going forward, Realm Energy will access Halliburton’s global infrastructure and partnerships, leading edge solutions and customized strategies for optimizing value from each specific shale formation, with the highest environmental standards.

Source: Realm Energy International- Press Release


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